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World's Biggest Hedge Fund Predicts The Coming Of Helicopter Money

World's Biggest Hedge Fund Predicts The Coming Of Helicopter Money - SPDR S&P 500 ETF ETF:SPY, SPX

Bridgewater is the world's largest hedge fund; so, when its former co-CEO and current chief investment officer believes radical change is coming to central bank policy, he thinks so for a reason.

Greg Jensen, along with other high-level Bridgewater Associates executives wrote in a note to clients on Wednesday that the U.S. Federal Reserve's actions thus far failed to sufficiently boost the domestic economy. Business Insider obtained a copy of the letter and stated that instead of lowering interest rates and quantitative easing, Jensen thinks the next move for the Fed is putting money directly into consumers' hands.

In other words, Jensen thinks the Federal Reserve will implement a policy of "helicopter money" — a phrase coined by famed economist Milton Friedmen that refers to the ability of a central bank to print money and figuratively throw it off a helicopter to a mass of cash-starved people.

The $150 billion hedge fund's executives said in its letter:

    "The world is not transpiring as most central bankers had expected. They have had to consistently adjust their thinking about what interest rates and monetary policies are appropriate, and they have had to be more accommodative than they had expected and buy more 'risky' assets. We believe that at this stage either fiscal stimulation that is monetized or putting money directly into the hands of spenders (i.e., MP3) is the logical next move."

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